Finance committee hears preliminary FY2026 fund-balance; surplus about $500,000, unassigned balance ~15.75%

Norm Kidro presented a preliminary year-end fund update, saying the town currently shows "a little over a 500,000 of, surplus" and that unassigned fund balance would be about $19,700,000, or roughly 15.75% of last year's budgeted expenses ($125,000,000). Kidro cautioned the numbers are preliminary and that final accruals and homestead-exemption revenue could shift the result before the audit.

The committee asked whether a one-year dip of this size would affect bond ratings. Kidro said he would not expect a small, single-year decline to change the town's rating, noting the agencies examine multiple years of performance: "I would not anticipate a 1 year decline of a small amount like this to impact our our bond rating." Members pressed on the longer-term trend and how the growing school budget—whose related funds are restricted—reduces the apparent fund-balance percentage even when absolute fund balance grows.

Council members discussed whether the fund-balance metric used by rating agencies should be a formal budgeting target. One member urged keeping the ratio part of annual budgeting and suggested staff produce modeling that shows how small interest-rate changes or a 0.1-point rating shift would change long-term debt costs. Kidro said final audited figures will be available before the town issues its audit in November and reiterated that TIF revenues count toward unassigned fund balance for the calculation discussed.

The committee did not take formal action beyond the discussion; members asked staff to provide follow-up modeling and to keep the fund-balance metric in ongoing budget conversations.